Nifty Strategy for 28th July | Sensex Trades Lower, Pharma Shines

The stock market experienced losses yesterday as Futures and Options contracts expired.

The Nifty index fell by 118 points, and the Sensex index declined by 440 points.

Despite weak market conditions, the Pharma sector saw substantial gains of over 3%, while the Auto sector declined by over 1%.

Check out this short video for detailed market update: Market Ready by Kotak Securities

Today, Indian share markets are trading on a negative note.

At the time of writing, the BSE Sensex is trading lower by 158 points. Meanwhile, the NSE Nifty is trading down by 28 points..

Among stocks, NTPC and Power Grid are the top gainers from the Sensex, while Bajaj Finserv and Tata Motors are the top losers.

Here’s a rundown of today’s expected market movements…

Nifty Technical Analysis:

The market opened with a positive trend yesterday due to global sentiments but faced profit booking at high levels.

The daily chart shows a lower top and a bearish candle, indicating a chance of further correction from current levels.

Traders should keep in mind that 19800 is the major resistance area. If the index trades below 19800, the correction wave may continue, resulting in a slip towards 19600-19580.

However, if 19580 is dismissed, the Nifty may fall to 19500/19450. In the worst-case scenario, the ultimate support level is 19300.

On the other hand, if the market rallies above 19800/66700, it may reach 19875-19900.

Trading Strategy for Nifty:

For the Nifty, consider short positions if it trades below 19800 with targets around 19600-19580 levels.

On the upside, long positions can be considered if it rallies above 19800 with targets near 19875-19900 levels.

Bank Nifty Analysis:

The Bank Nifty has formed a double top at 46300, and if it trades below 45400, it could fall to 45000.

Resistance would be at 45900/46000 levels.

In the Bank Nifty, cautious trading is advised, and short positions can be considered if it falls below 45400 with targets around 45000 levels.

Nifty IT Index:

The Nifty IT index is stabilizing around 29500/29700, which is positive for investors who may invest in select stocks with a medium to long-term view.

All in all, caution is advised for day traders, and monitoring the key support and resistance levels is crucial for making trading decisions. Stay alert for potential movements in the metal sector and PSU Banks.

See you tomorrow!

Kotak Securities

Disclaimer: The information provided in this article is based on technical analysis and does not constitute financial advice. Traders should exercise their own judgement and consult with financial professionals before making any investment decisions.